Elon Musk’s team reaches out to suppliers for Terafab chip project

By Alexa Hornbeck | Published: 17-Apr-2026

Tesla staff have been reported to be contacting major semiconductor equipment suppliers Applied Materials, Tokyo Electron and Lam Research to obtain pricing estimates and delivery timelines on equipment

Elon Musk’s team has begun engaging with key chipmaking equipment suppliers as part of early preparations for the proposed “Terafab” semiconductor manufacturing complex.

The outreach is reported to include companies such as Applied Materials, Tokyo Electron and Lam Research, with discussions focused on obtaining price quotations and delivery schedules for a range of semiconductor manufacturing tools, including photomasks, etchers, deposition systems, cleaning equipment and testing devices.

Samsung Electronics, which already works with Tesla as a chip supplier, has also been contacted for potential support.

Suppliers reportedly asked to provide rapid estimates despite limited technical specifications, indicating that detailed engineering requirements are still being defined.

Intel onboard with Tesla and SpaceX?

Intel has also been reported as joining the broader Terafab initiative, which aims to support advanced chip production for AI, robotics and data centre applications. 

The project is targeting long-term manufacturing capability, with early production timelines discussed for the end of the decade.

The activity reflects initial procurement and planning work for the Terafab project, a joint initiative involving Tesla and SpaceX aimed at expanding in-house AI chip production capacity. 

The facility is planned for construction at Tesla’s Austin, Texas campus.

Musk announced the Terafab project in March, but construction of the project is still at an early pre-construction stage, with supplier engagement underway but no confirmed full-scale fab build yet.

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